Ultrabook prices might drop thanks to subsidies

Asus, Acer and Toshiba are said to be in the process of adjusting their ultrabook pricing thanks to a rather generous subsidy from Intel.

The prices should be cut by $100 by the end of the year, probably in the hopes of boosting holiday sales. In the first quarter of 2012 prices could drop by 5 to 10 percent. Although it doesn’t sound like much, the subsidy could make ultrabooks a bit more appealing and help vendors meet their sale targets.

Digitimes claims manufacturers are still having a hard time meeting Intel’s $1,000 price target with a number of their models. At the moment, the bill of material cost for 13-inch models with SSD storage is estimated at $690. However, after you factor in OEM costs, marketing and distribution, the figure ends up closer to $940.

This means ultrabook makers have to operate with tight margins and leaves very little room for additional features and upgradeability.